Mgt 200. Business Basics
1. Following is the projected net income stream associated with the use of Zartek technology. (Note: this net income stream does not take into account that Zarteks
owners invested $2,000 to develop Zartek in Year 0.) Globus Maximus Enterprises would like to buy the Zartek patent. How could the net income data be used to help
establish the dollar value of the technology (assume a prevailing interest rate for the five year time period as 7% per year)? Show your reasoning in establishing a
sales price. Be realistic in your analysis (i.e., are there other factors that should be taken into account than what is covered here?).
Net income: Year 1 = $1000, Year 2 = $1300, Year 3 = $1200, Year 4 = $1300, Year 5 = $1,200
Initial investment in Zartek technology: $2,000
2. The 4Ps of marketing capture the key elements of the marketing function: product, price, promotion, and place. The place element refers to distribution channels
through which goods and services flow. In this question we focus on place.
Reference: Introduction to Business, Madura (2007) 4th edition
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